Understanding Business Organization

Understanding Business organization is an organization that carries out economic activities and
aims to generate profits ( profit). In order for a business to run successfully, it needs to be
organized. In organizing a business, of course, you must pay attention to the existing business
elements.
Understanding Business Organization According to Experts
Business Organization According to Musselman and Jackson (1992)
They mean that business is an activity that meets the economic needs and desires of the
community, companies that are organized to engage in these activities.
Business Organization According to Gloss, Steade and Lowry (1996)
They mean that business is the sum of all activities organized by people engaged in commerce
and industry who provide goods and services for the needs of maintaining and improving their
standards and quality of life.
Business Organization According to Allan Afuah (2004)
He defined that business is a collection of activities carried out to create ways to develop and
transform various resources into goods or services desired by consumers.
Business Organization According to Steinford
Defines business as an institution that produces goods and services needed by society.
According to Steinford, if the needs of the community increase, business institutions will
increase their development to meet these needs while earning profits.
Business Organization According to Mahmud Machfoedz
It is also argued that business is a trading business carried out by a group of people who are
organized in order to make a profit by producing and selling goods or services to meet the
needs of the community.
Business Organization According to T. Chwee (1990)
According to him, business is a system that produces goods and services to satisfy the needs of
the community. Meanwhile, according to Grifin and Ebert, business is an organization that
provides goods or services that aim to make a profit.
Business Organization According to Griffin and Ebert (1996)
He defines business as an activity that provides goods or services needed or desired by
consumers. Can be done by corporate organizations that have legal entities, companies that
have business entities, as well as individuals who do not have legal entities or business entities
such as street vendors, stalls that do not have a Business Place License (SITU) and Business
Place License (SIUP) and other informal businesses.
Legal Basis of Legality of Business Organizations
One proof that a business entity or company has carried out its obligation to register its business
entity is the existence of an NIB or Business Identification Number.
Based on Law No. 11 of 2020 concerning Job Creation, the TDP (Company Registration
Certificate) requirement in Article 5 of Law No. 3 of 1982 concerning Compulsory Company
Registration has been revoked and replaced with NIB in order to simplify licensing, so that
other licenses such as SKU (Business Certificate) or SIUP (Trading Business License) are no
longer needed. Therefore, NIB is mandatory for anyone who has a business entity.
Types of Business Organizations
Individual Company.
Business An individual company is a company or business owned by a sole proprietor while
an individual business entrepreneur is the owner of an individual company. Individuals can
create a sole proprietorship without certain permits and ordinances.
Limited Liability Company (PT).
A limited liability company (PT) (Dutch: Naamloze Vennootschap) is a legal entity for
conducting a business that has a capital consisting of shares, whose owners own as many shares
as they own. Each person can own more than one share which is proof of ownership of the
company.
Company Komanditer (CV)·
Komanditer Company (commanditaire vennootschap) or usually abbreviated as CV,
Komanditer company is a species founded by one or several people who entrust money or
goods to someone or several people who run the company and act as leaders.
Company.
A firm (Dutch: venootschap onder firma; a trade union between several companies) or often
also called Fa, is a form of partnership to conduct business between two or more people under
a common name.
Comparison between firm, CV, and PT in business organization:
Company form:
PT: is a form of company incorporated and its establishment is regulated in writing in Law
Number 40 of 2007 concerning Limited Liability Companies (UU PT).
CV: is a form of business that is not a legal entity because there are no certain regulations
governing it.
Firm: is a civil partnership whose business activities are under a common name in which each
ally has the right to act on behalf of the Firm.
Conditions of establishment:
PT: requires at least 2 (two) people involved in its establishment and both are Indonesian
Citizens (WNI).
CV: is a form of business in which cooperation is established between two or more parties,
where one party only provides capital and the other party is responsible for managing and
managing existing capital.
Firm: is a form of partnership between two or more persons to operate a business entity under
one common name.
Naming:
PT: the naming of a PT must be preceded by "Limited Liability Company" or PT and the name
of the PT must not be the same or similar to the name of an existing PT established in the
territory of the Republic of Indonesia.
CV: has no specific rules regarding naming.
Firm: the name of the firm must consist of the name of an active ally or the name of a passive
ally or a combination of both.
Company capital:
PT: minimum authorized capital of Rp. 50.000.000,- unless otherwise stipulated by laws or
regulations governing the implementation of such business activities.
CV: the amount of initial capital is not specifically determined so that capital deposits can be
determined and recorded independently.
Firm: members of the firm will hand over personal wealth according to the provisions in the
deed of establishment of the company.
Deed making process:
PT: the process of making a deed in a Limited Liability Company is relatively long.
CV: the process of making a deed on a CV is quite fast.
Firm: regulated in the KUHD or Commercial Law Code and also regulated by the Criminal
Code.
Taxes and salaries of employees:
PT: Salary should not be given under UMP.
CV: parties from the CV can provide a deferral in the provision of the minimum wage.
Firm: each member shall be partly liable if the firm suffers losses or goes bankrupt.
Business licensing is not included in the comparison between firms, CVs, and PT because
business licensing is required by all forms of business entities.
Establishment of a Business Organization
Some important aspects related to the establishment of a business organization:
Understanding the Organizational Structure of a Business
Creating a business plan
Preparing human resources
Understand the laws and necessary permits
Offending resources and infrastructure
Conduct marketing and market setting
Manage and oversee business operations
Membership in business organizations
Membership in a business organization may vary depending on the type and structure of that
organization. In general, membership in a business organization may include founders
shareholder
director
Management
employee
Business partners
How business organizations work
Here are some general steps in how a business organization works:
Determination of business structure
Business operations
Funding and financial management
Marketing and competitive strategies
Resource and capability development
Operational management
End of business organization
Some common signals that indicate a business organization has ended are:
Market uncertainty
Uncertainty of the product or service
Errors in management
Uncertainty of human resources
Capital uncertainty
Changes in law
Strong concurrency
Reference
https://www.academia.edu/26344069/BERAKHIRNYA_USAHA_DAN_SUMBER_DAYA_
MANUSIA_BAGI_ORGANISASI
https://greatnusa.com/artikel/proses-bisnis-adalah/
https://www.officenow.co.id/perbedaan-pt-dan-cv/
https://indodrift.com/7-pengertian-organisasi-bisnis-menurut-para-ahli/
https://paulipu.com/macam-macam-organisasi-bisnis/
https://blog.justika.com/dokumen-bisnis/bentuk-bentuk-legalitas-perusahaan/
https://www.siker.id/detail/tips/2574/artikel/apa-perbedaan-badan-usaha-pt-cv-dan-firma